Here’s Some Advice to Sellers in a Slowing Real Estate Market  

We all realize by now that the real estate market is slowing due to a reduced buyer pool, caused in part by the increase in mortgage interest rates.

Here’s some advice to sellers who don’t want their home to sit unsold on the market.

1)   Reconsider buying your replacement home first, expecting to sell your home immediately. That strategy was based on the difficulty in finding a replacement home. Now you can sell first, have a 45- to 60-day close and reasonably expect to find your replacement home before you have to surrender your current one.

2)   Don’t price your home based entirely on recent comparable sales, but price it slightly lower. Buyers know the market is softening and will be looking for a good deal.

3)   With an increased inventory of listings, it’s more important than ever to stage your home and improve its curb appeal as well as its interior appeal.

4)   Listen to the market. If you get few showings and no offers in the first week, don’t wait to lower the price.

5)   Magazine-quality pix and video are more important now to make your home stand out. Hire an agent who will order professional HDR still photos, shoot a narrated video tour and drone video, and market your home the way Golden Real Estate does.

When interviewing a listing agent, ask him or her to bring their Matrix productivity print-out instead of trusting their verbal description of their level of success with prior listings.

Answering a Home Seller’s Question

Q. I want to get above my listing price. If I get a full-price offer, do I have to accept it?

A. My sellers occasionally ask this question because my listing strategy involves pricing a home at or near current, real-world market value, as opposed to some hoped-for higher price. Sometimes a seller says they don’t want to sell for any amount that’s not above the listing price and asks if they’re required to accept a full-price (or any) offer.

The answer is “no.” Sellers cannot be compelled to accept an offer, irrespective of the offered price.  I always explain this up front to prospective buyers (through their agent, if represented) who submit a full-price offer.  The Colorado real estate contract states that if the listing agent produces an offer that matches the terms specified, the seller owes the commission to the agent. To better serve my clients’ interests I insert an additional provision stating that the seller, will not owe me a commission on any rejected offer.

At the same time, however, I point out that if the only offer we receive is for full-price (or less), then we didn’t underprice the home, did we?  

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Do you have a question about real estate that you’d like answered here? Put it in an email and send it to me at Jim@GoldenRealEstate.com.